Question
What do you think of Abe's three arrows? The three arrows are: 1. Monetary Easing: This involves increasing the money supply in the economy to
What do you think of Abe's three arrows?
The three arrows are:
1. Monetary Easing: This involves increasing the money supply in the economy to combat deflation. The Bank of Japan would buy government bonds to inject more money into the economy, hoping to stimulate inflation and encourage spending.
The BOJ set the price stability target at 2% (year-on-year rate of change in the consumer price index). The government expects the BOJ to implement aggressive monetary easing to achieve this target as soon as possible. The BOJ is buying long-term government bonds and increasing the monetary base, in contrast to previous attempts at an expansionary monetary policy which mainly focused on buying short-term government bonds
2. Fiscal Stimulus: This involves increasing government spending to stimulate economic growth. The government would invest in public works projects and other areas to create jobs and increase demand in the economy.
3. Structural Reforms: This involves making changes to the economy to make it more competitive and efficient. This could include deregulation, labor market reforms, and measures to increase competitiveness in various sectors.
i would think that overall the three arrows succeeded to a certain extent as the economy is improving now. would that be correct? what other factors should i contribute to the success and failures
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